Analyzing StoneX Group (NASDAQ:SNEX) & Intercorp Financial Services (NYSE:IFS)

Intercorp Financial Services (NYSE:IFS) and StoneX Group (NASDAQ:SNEX) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Intercorp Financial Services has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, StoneX Group has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Intercorp Financial Services and StoneX Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intercorp Financial Services	0	2	1	0	2.33
StoneX Group	0	1	3	0	2.75

Intercorp Financial Services currently has a consensus price target of $56.00, suggesting a potential downside of 2.15%. StoneX Group has a consensus price target of $122.00, suggesting a potential upside of 2.66%. Given StoneX Group’s stronger consensus rating and higher probable upside, analysts plainly believe StoneX Group is more favorable than Intercorp Financial Services.

Profitability

This table compares Intercorp Financial Services and StoneX Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intercorp Financial Services	30.53%	17.49%	2.13%
StoneX Group	0.30%	19.31%	1.02%

Insider and Institutional Ownership

75.9% of StoneX Group shares are owned by institutional investors. 11.8% of StoneX Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Intercorp Financial Services and StoneX Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intercorp Financial Services	$1.67 billion	3.81	$542.25 million	$5.35	10.70
StoneX Group	$132.38 billion	0.07	$305.90 million	$5.60	21.22

Intercorp Financial Services has higher earnings, but lower revenue than StoneX Group. Intercorp Financial Services is trading at a lower price-to-earnings ratio than StoneX Group, indicating that it is currently the more affordable of the two stocks.

Summary

StoneX Group beats Intercorp Financial Services on 9 of the 14 factors compared between the two stocks.

About Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.